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A Disability Policy Research Forum

A Disability Policy Research Forum. December 3, 2009 12:00 to 1:30 pm. Mathematica Policy Research Presents. On The Air. Disability and Poverty: What Is the Connection and What Should We Do About It?. Speakers: Gina Livermore, Mathematica Policy Research

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A Disability Policy Research Forum

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  1. A Disability Policy Research Forum December 3, 2009 12:00 to 1:30 pm Mathematica Policy Research Presents On The Air

  2. Disability and Poverty: What Is the Connection and What Should We Do About It? Speakers: Gina Livermore, Mathematica Policy Research Shawn Fremstad, Center for Economic and Policy Research Pamela Loprest, The Urban Institute Disability Policy Research Forum December 3, 2009

  3. Reference D. Stapleton, B. O’Day, G. Livermore and A. Imparato “Dismantling the Poverty Trap: Disability Policy for the 21st Century.” The Milbank Quarterly, Vol. 84, no. 4, 2006, pp. 701 – 32.

  4. Disclaimer The contents do not necessarily represent the policy of the Department of Education, and you should not assume endorsement by the Federal Government (Edgar, 75.620 (b)).

  5. Poverty and Hardship Among Working-Age People with Disabilities Gina Livermore Disability and Poverty: What is the Connection and What Should We Do About It? December 3, 2009

  6. Topics • Poverty rates among working-age people with disabilities • Share of working-age people experiencing annual and longer-term poverty who have disabilities • Material hardship among working-age people with disabilities

  7. Defining Poverty • Official U.S. measure is based on a measure developed in the mid-1960s, adjusted annually for cost of living increases • Based on the cost of minimum necessary food consumption and assumption that families spend 1/3 of income on food • Annual family income is judged relative to the poverty threshold • 2008 Census Bureau poverty thresholds • $11,201 for individual under age 65 • $22,025 for a 4-person household

  8. Poverty Rates in Selected Subpopulations Sources: Census Bureau (undated), using the 2008 the Current Population Survey; Rehabilitation Research and Training Center on Disability Statistics and Demographics (2009), using the 2008 American Community Survey; Livermore et al. (2009), using the 2006 National Beneficiary Survey

  9. 1997 Poverty Rates for Different Disability Measures, Age 25-61 Source: She and Livermore (2009), using the 1997 Survey of Income and Program Participation.

  10. Poverty Rates Over a 48-Month Period by Duration of Limitation Source: She and Livermore (2009), using the 1996-1999 Survey of Income and Program Participation.

  11. Those with Long-term Disabilities are More Likely to Experience Long-Term Poverty Source: She and Livermore (2009), using the 1996-1999 Survey of Income and Program Participation.

  12. Disability Prevalence in the Working-Age Poverty Population Source: She and Livermore (2009) based on the 1996-1999 Survey of Income and Program Participation.

  13. Material Hardship Indicators • Hardship with respect to consumption of material items necessary to meet basic needs • Unable to meet expenses • Unable to pay rent or mortgage • Unable to pay utility bills • Unable to get needed medical care • Unable to get needed dental care • Food insecurity (with or without hunger)

  14. Hardship Prevalence by Disability Duration and Income, Age 25-61 Income More than Twice Poverty Level Source: She and Livermore (2007), using the 1996-1999 Survey of Income and Program Participation.

  15. Disability Prevalence Among Those Age 25-61 Experiencing Hardships in 1998 Income 200% of Poverty or Below 62% 56% 54% 34% Source: She and Livermore (2007), using the 1996-1999 Survey of Income and Program Participation.

  16. Illustration of the Impact of Disability on the Likelihood of Hardship Disability-Adjusted Poverty Standard (Income needed to have equal probability of reporting hardship, all else held constant) 2005 Poverty Level 2005 Poverty Level No Limitations Source: She and Livermore (2007), using the 1996-1998 Survey of Income and Program Participation.

  17. Conclusions • The poverty rate for people with disabilities is very high, especially among those with long-term disabilities • A very large share of those living in poverty in any year have disabilities • That share is even larger when longer-term (48-month) poverty is considered

  18. Conclusions (con’t.) • People with disabilities living in poverty are much more likely than others in poverty to experience material hardship • If the official poverty standard reflected the effect of disability on the likelihood of material hardship, people with disabilities would constitute an even larger share of those living in poverty

  19. References Census Bureau, Poverty 2007 Detailed Tables http://www.census.gov/hhes/www/poverty/poverty07.html. Livermore, G., D. Stapleton, and A. Roche. Work Activity and Use of Employment Supports Under the Original Ticket to Work Regulations: Characteristics, Employment, and Sources of Support Among Working-Age SSI and DI Beneficiaries. Washington, DC: Mathematica Policy Research, 2009. Rehabilitation Research and Training Center on Disability Statistics and Demographics. Annual Disability Statistics Compendium, 2009. She, P. and G. Livermore. Long-Term Poverty and Disability Among Working-Age Adults. Journal of Disability Policy Studies, vol. 19 (4), pp. 244-256, 2009. She, P. and G. Livermore. Material Hardship, Disability, and Poverty Among Working-Age Adults. Social Science Quarterly, vol. 88 (4), pp. 970-989, 2007.

  20. For More Information • Please contact: • Gina Livermore • Center for Studying Disability Policy • Mathematica Policy Research • 600 Maryland Ave SW, Suite 550 • Washington, DC 20024 • (202) 264-3462 • glivermore@mathematica-mpr.com • www.DisabilityPolicyResearch.org

  21. Implications of New Research on Poverty and Disability • Shawn Fremstad • Director, Inclusive and Sustainable Economy Initiative • Center for Economic and Policy Research • fremstad@cepr.net

  22. 53% Chance of Male Household Head Experiencing a Period of Disability by Age 56. (Excludes those with onset of disability under age 18). Source: Bruce Meyer and Wallace Mok, Disability, Earnings, Income and Consumption, Working Paper, December 2008

  23. 19% Chronic and Severe 37% Chronic 53% 18% Chronic and Not Severe Chance of Male Household Head Experiencing a Period of Disability by Age 56. 16% Not Chronic 8% Temporary 8% One-Time Source: Bruce Meyer and Wallace Mok, Disability, Earnings, Income and Consumption, Working Paper, December 2008

  24. Change in Income Before and After Disability Onset 0 Chronic, Not Severe One-Time -10 All Disabled -20 -30 Chronic Severe -40 0 Years Before Onset Years After Onset Source: Bruce Meyer and Wallace Mok, Disability, Earnings, Income and Consumption, Working Paper, December 2008

  25. Change in Income Before and After Disability Onset One-Time Chronic, Not Severe All Disabled Chronic Severe Years Before Onset Years After Onset Source: Bruce Meyer and Wallace Mok, Disability, Earnings, Income and Consumption, Working Paper, December 2008

  26. Change in Income Before and After Disability Onset Chronic, Not Severe One-Time All Disabled Chronic Severe Years Before Onset Years After Onset Source: Bruce Meyer and Wallace Mok, Disability, Earnings, Income and Consumption, Working Paper, December 2008

  27. 53% 47% Chance of male household head experiencing a period of disability by age 56. Percent of working-age adults with incomes below annual poverty line who report a disability. Source: Meyer and Mok (December 2008). Source: She and Livermore (2009).

  28. 46.3 million Number of Americans without health insurance.

  29. Percentage of Workers without Paid Sick Days Nearly half of all private sector workers are provided with no paid sick days by their employer. Almost 80 percent of low-wage workers are provided with no paid sick days.

  30. Full-time-equivalent sick leave benefits guaranteed to a worker absent from work for 50 days. 0 Source: Heymann, Rho, and Schmitt, Comparison of Paid Sick Leave Policies in 22 Nations (2009)

  31. $457 $3,053 Worker with No Children Worker with One Child Maximum EITC Benefits, 2009

  32. Rate of “Any Hardship” by Income/Disability Status Work Limitation < 12 months Work Limitation > 12 months No Work Limitation Below 100% of Poverty No Work Limitation Between 100-200% of Poverty Source: She and Livermore, Table 2 (2007)

  33. Source: OECD, Sickness, Disability and Work, Background Paper, May 2009

  34. Disability and Poverty: Improving US Anti-Poverty Policy with a Disability LensPamela LoprestThe Urban InstituteDecember 2009 Presentation for the Forum on Disability and Poverty Center for Studying Disability Policy Mathematica Policy Research Washington, DC

  35. Poverty and Disability Who Are We Talking About? • -public benefit recipients • -marginally employed or unemployed and at-risk of poverty

  36. Work as Anti-Poverty Policy • Promotion of work as a critical way out of poverty • Employment rates of PWD about half • US anti-poverty policy increasingly work-focused

  37. Not just work alone…. • “maximum economic self-sufficiency at a reasonable standard of living” • Long-term income support system necessary - requires benefit adequacy • Work supports important • Wage/income supplementation for low-wage and/or part-time workers

  38. Income targeted Benefits • Food stamps (SNAP) • SSI • Temporary Assistance for Needy Families (TANF) • Earned Income Tax Credit Effective in reducing poverty

  39. Public Disability Benefits Policy • “Poverty Trap” • Improve work incentives • Adequacy of benefits – many still in poverty

  40. Not Eligible for SSI • EITC biggest $ program- limited for childless, target disability • TANF small but instructive • Incentives for work & mandates • More difficult access/temporary not serving those in need • Struggles w/ how to support work • Cost of investing in work & supports • Lack of available support systems – particularly mental health

  41. Policies to Invest in Work Capacity • Current Low education levels • Employment and training • Workforce Investment Act (WIA)/ VR • Issues w/ focus on low-wage workers • Efficacy of programs – limited evaluation • Even positive results – earnings remain low due to low wages and low hours • Improve education outcomes • college attendance/retention

  42. Policy Changes to Support Work • Paid Leave • Health Insurance • Accommodations • Anti-discrimination

  43. Policy to Support Workers at Onset of Disability and Avoid Poverty • At later ages harder to continue work poverty doubles after onset of disability among 51 to 64 • Unemployment Insurance reform TDI, partial benefits • Remaining attached to work Solutions for less-skilled workers

  44. Conclusions • Work is a clear goal toward promoting higher living standards and a focus of much of US poverty policy • Appropriate incentives, investments, and supports for work among persons with disability are not in place • Income Support or supplementation given work capacities needs to be addressed

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